“Foreclosure starts and completions are down significantly from one year ago; and since January 2012, rising home values have lifted 2.4 million homeowners back above water. That said, we remain cautious because although mortgage delinquencies are trending down, they still remain quite high compared to historic norms.”

Keep checking our blog, we will keep you updated about the latest developments in the real estate market. If you have any questions or concerns about your own personal situation I would be happy to give you a FREE one on one legal consultation. You can call me at 916.442.6400, send me an email at tgreene@tedgreenelaw.com or just visit my websitewww.upsidedownca.com.

When the federal government wanted to assess the damage done by faulty records keeping and unethical policies, the regulators told the banks that they needed independent consultants to review the file. Companies such as Deloitte & Touche, Ernst & Young, PricewaterhouseCoopers, and Promontory Financial Group were hired to audit the banks’ files for homeowners that were foreclosed upon. These groups were not capable of due diligence thanks to backroom payoffs and direction from management. Some auditors were instructed to review files that were less likely to have errors. Homeowners whose loans were through JP Morgan Chase were reported as being victimized less thanks to Deloitte employees who were instructed to look the other way. Promontory’s employees performing the audits were given incentive to complete file audits quickly with some employees given gift cards up to $500.

In an odd turn of events, the banks paid the auditors to robo-sign the audit of robo-signed foreclosures. Senator Elizabeth Warren of Massachusetts became interested in this issue in March and started hearings in early April. Somehow the banks had control of determining who would receive damages and how much. A statistically unsound sample of 100,000 files were reviewed while the remaining 4 million people were let down by lack of government oversight and bribery from the banks being audited. Overall, the seven outside consultants the banks hired received $2 billion. The settlement was already a big win for the banks; only homes foreclosed on between 2009 and 2010 were included.

Adding insult to injury – Rust Consulting – the company that was chosen to disburse the settlement funds has bungled its end. A major political player, Rust has its own PAC and had regulators believing that they were the best people for this job. In April, a batch of checks went out to homeowners for the settlement. Those checks bounced because Rust lacked the foresight to move funds into the proper account. The next thing that angered those outside of the banks was the incorrect amount issued to 100,000 people. Rust says that they have addressed these issues but only time will tell.

Overall, the banks are still ahead of the game and government officials may have to hound their every move. We can only hope that no bank is too big to prosecute and that the ruling will fall on the side of the people who were victims of predatory practices. If you have any questions or concerns about your own personal situation I would be happy to give you a FREE one on one legal consultation. You can call me at 916.442.6400, send me an email at tgreene@tedgreenelaw.com or just visit my website www.upsidedownca.com.

President and CEO of Fannie Mae, Timothy J. Mayopoulos, released a progress report for 2012 which details some of its activities, performance, and overall goals. Many are concerned and they post that Fannie Mae and Freddie Mac need to be taken out of government conservatorship and greater housing reform enacted. Fannie Mae currently pays nearly all of its profits to the government in dividends, this is not a repayment to take itself out of conservatorship. Rumors in the housing industry hint at a growing concern that Fannie Mae is actively maintaining its market dominance over Freddie Mac and that policy makers may not change how it operates but instead use it as a federal piggy bank.

According to Mr. Mayopoulos, in an exclusive interview with Bloomberg, the current massive profits and market share are the results of years’ worth of work and that this result should come as little surprise to those in the know. He also went on to say that he doesn’t think anyone wants taxpayer dollars supporting 90% of the lending market. Barney Frank, a longtime former congressman from Massachusetts, now posits that Fannie Mae and Freddie Mac should be abolished. Much of the profit is from a $60 billion accounting tweak that changed how deferred tax assets were addressed so that a single dividend payment was made to the U.S. Treasury.

In a story out today, by the Mortgage Bankers Association, mortgage delinquencies ticked up. Yes you heard that correctly – the number went UP (see link below). This number is based on the number of people who have recently stopped making their mortgage payment. Many people I talk to on a daily basis have finally decided it’s time to stop trying to hang on to their upside down mortgage.

In another article, from earlier in the week, it stated that most real estate experts think the recent uptick in home prices is unsustainable because it’s based not on good economic news but rather it’s based on artificial factors. The article went on to say that the current mini-bubble will not last and some even predicted that prices will actually go back down in mid-2014. The bottom line for most people is that if you have an upside down mortgage and are unsure about whether the tax break laws for debt forgiveness will be extended or not – you probably should seriously consider getting your short sale started immediately.

As an attorney and real estate broker I have created a process to help such homeowners that costs them nothing and quite often I can get them $3,000 at the close of escrow. My clients appreciate having a lawyer on their side every step of the way. The banks have lawyers on their side and with us on your side the fight is a little fairer.

If you have any questions or concerns about your own personal situation I would be happy to give you a FREE one on one legal consultation. You can call me at 916.442.6400 or send me an email at tgreene@tedgreenelaw.com or just visit my website www.upsidedownca.com.

On Monday, May 6, 2013, Lender Processing Services reported that troubled home loans have hit a six year low as of March, the lowest since 2007. Negative equity has also dropped 41 percent since 2012. These numbers are nearly pre-crisis and are quickly approaching the conditions from the period between 2000 and 2004.

“There has always been a clear correlation between higher levels of negative equity and new problem loan rates,” Blecher said. “Looking at the March data, we see that borrowers with equity are actually outperforming the national average — at 0.6 percent, this group is quite close to pre-crisis norms. The further underwater a borrower gets, the higher those problem rates rise. Borrowers with loan-to-value (LTV) ratios of just 100-110 percent are actually defaulting at more than twice the national average. For those 50 percent or more underwater, we see new problem rates of 4 percent.

“Still, the overall equity trend has been a very positive one,” Blecher continued. “LPS’ latest data shows that the share of loans with LTVs greater than 100 percent has fallen 41 percent from a year ago. In total, there were approximately 9 million such loans, or about 18 percent of active mortgages. Some states, including the so-called ‘sand states’ (Arizona, Florida, Nevada and California), are still well above the national level, at an average 28 percent, but they, too, have seen improvement over the last year, with negative equity dropping over 40 percent across those four states since January 2012.”

Loan Processing Services also released data that shows the March numbers revealed an 8.2 percent month over month decrease in national foreclosure starts while foreclosure sales rose 10.1 percent. Recently, here in California, the Homeowner’s Bill of Rights was passed. The bill has limited certain troublesome lender practices such as dual tracking, requires a single point of contact to proceed with home foreclosure, and insures tenants’ rights if a lease is present. The California Homeowner’s Bill of Rights has contributed to the fall in foreclosure sales by 35 percent but has not affected the number foreclosure starts, which is on par with the rest of the country.

Previously we discussed that investors are purchasing homes in Sacramento and a recent development in this arena is the initial public offer of shares of Colony American Homes. While we hear more about Blackstone group in this area it should come as no surprise that other investment firms are buying up homes. With Colony American Homes going public the tenant landlord relationship may grow even more depersonalized. What was once a mom and pop operation for most renters is now turning into a professional, retail experience more like renting an apartment or multi-dwelling unit. Time will tell how well this model works for single family homes. The public offering is also good news for investors who would like to invest in real estate but may not have sufficient means to purchase a home at this time.

The housing market is still volatile. While certain regional markets are recovering and many national statistics are appearing more favorable, we must be cautious as many are still unemployed. If you have any questions or concerns about your own personal situation I would be happy to give you a FREE one on one legal consultation. You can call me at 916.442.6400 or send me an email at tgreene@tedgreenelaw.com.

A recent report from Zillow shows that someone earning median income of $52,513 buys a home at the median price of $157,400, only 12.6 percent of their income would be required for mortgage payments. That is more than a third of the average pre-bubble; during the bubble the average was approximately 20 percent.

While it is an improvement for consumers there is still a large gap between income and home prices. During the bubble housing prices were nearly quadruple the amount of income of the average American. Home values are now approximately three times the median income – 15 percent more than the past average, relative to income.

At a time when renting and home buying seem to be approaching equal monthly cost it is almost harder than ever for those with credit which was previously considered good to buy a home. Young professionals are the lifeblood of the future real estate market. Homebuyers from that group typically will buy their first home and as their lives progress, children enter the equation, and the initial home becomes too small, a larger home is purchased to accommodate their needs. Without the first step of buying a home, at a younger age it is harder to establish credit and build wealth. The market may suffer in the future without entry of these critically important buyers.

Recent pricing gains have mainly been the consequence of decreased traditional inventory and increased sales volume. The shadow inventory of distressed properties is not typically taken into account. Short sales are not often advertised like equity sales and Many are heralding a housing recovery and possible boom (or bubble) but Fitch Ratings recently released a report about its concern over alternate economic factors. According to Fitch pricing may be inflated by up to 10 percent.

If you have any questions or concerns about your own personal situation I would be happy to give you a FREE one on one legal consultation. You can call me at 916.442.6400 or send me an email at tgreene@tedgreenelaw.com or just visit my website www.upsidedownca.com.

Yesterday Distressed Servicing News published a report by Fitch Ratings that seemingly threw some cold water on the newly found hot real estate market. This article explains why the recent uptick is based on artificial stimulus which cannot and will not be sustained.

The article listed the perfect storm combination of factors of why we recently saw a good jump up in home values. None of these factors were based on good economic news.

This dreary forecast predicts that prices will actually drop in the middle of 2014!

Here are the key points:

– Unemployment is down ONLY because of people just plain giving up and falling out of the search for work and NOT because of good economic news.

– Pent up demand – many people stopped looking when the housing crunch hit.

– Ridiculously low interest rates.

– Very little “new home” construction.

– Investors buying homes for cash at an unseen pace.

The recent uptick has additionally caused some fence sitters to get back in but since they don’t have cash they can’t compete. They are struggling to find inventory which continues the uptick. Simple supply and demand factors at work.

Once the inventory level gets back to “normal”, and it always does seem to return then the basis for this article will materialize as predicted. They basically say we are in a mini bubble and it too will burst. I guess time will tell. I have never seen a market quite so unpredictable as we have seen the last few years and we aren’t done yet.

If you have any questions or concerns about your own personal situation I would be happy to give you a FREE one on one legal consultation. You can call me at 916.442.6400 or send me an email at tgreene@tedgreenelaw.com or just visit my website www.upsidedownca.com.

]]>http://upsidedownca.com/price-gains-may-be-temporary/feed/0Qualified Written Request –How to Use Ithttp://upsidedownca.com/qualified-written-request-how-to-use-it/
http://upsidedownca.com/qualified-written-request-how-to-use-it/#respondWed, 10 Apr 2013 20:34:24 +0000http://blog.upsidedownca.com/?p=557read more →]]>A qualified written request is a letter that you can send to your lender to ask for information relating to your loan or to dispute errors about your loan account.

When writing a qualified written request, you should NOT write your question on your mortgage statement or payment coupon. It should be written on its own sheet of paper. Remember to include information that can help the servicer identify who you are: name, service address, account number of the borrower.

In your letter, write a statement of reasons why you believe that your lender has made an error to your account or write a detailed explanation as to information relating to your loan.

The U.S. Department of Urban Housing and Development (HUD) have a sample QWR on their website you can follow.

When you are done writing your QWR, you should send it in certified mail and request a return receipt so you will have confirmation of the arrival of your letter.

Be sure to find the address that the lender uses for receiving QWRs. Sometimes, this address may be different from where you send your payment, or could be even different from the customer service address. It’s always a good idea to write: THIS IS A QUALIFIED WRITTEN REQUEST UNDER SECTION 6 OF THE REAL ESTATE SETTLEMENT PROCEDURES ACT (RESPA).

When your lender receives your request it has 20 business days to acknowledge your QWR. They then have 60 business days after it receives your QWR to provide the corrections, clarifications, or information you request, or explain why it cannot provide you the information or that the current information on your account is correct.

Their response should include the name and telephone number for the individual, office, or department of the servicer who can provide you with additional assistance if you have any questions.

While you are waiting for their response, continue your payments on your mortgage as scheduled.

“Just sign here,” they say gleefully. The man in the fancy suit in front of you smiles from ear to ear, handing over a pen that will lock your life to a piece of paper. You feel nervous and unsure, but the man in front of you sticks the pen in your face and tells you this is the only way to save your home.

The Scam

“Sign on the dotted line, and we short sale your home,” with a $500 upfront fee of course.

Programs are created to help struggling homeowners take their first steps into short selling but for every new program is a scam and a con artist, waiting to take advantage of homeowners who are vulnerable. What can you do to save yourself from these scams?

Spotting the Scammer

If someone calls and tells you they can short sell your home with no problems, proceed with caution. Some may really be good people helping you out but others may be scammers prowling to get into your wallet.

If the deal sounds too good to be true, chances are that deal is not going to follow through like you want.

If you’re told to sign something on your first meeting but you’re not even sure what you’re signing, seek extra help from others before you decide. You may be about to give sensitive information to people you don’t even know.

An easy way to spot a scammer is in how they react:

They force you to act immediately, usually on the spot

They hand you a pen on the first day and before you can start asking, they’re already having you sign.

They tell you that you don’t have to meet with an attorney for a consultation.

If you have a feeling you might be walking into a scam, contact the local FBI office or contact the Department of Real Estate. These two will be able to verify if it’s a scam or not. Remember, you are not obligated to pay anything upfront, either.

It is better to be safe than sorry!

Good help can come from great real estate agents (like us!), or attorneys who give free advice (like us!). Give us a call for a free consultation, and we’ll tell you if it’s a deal you should sign or not.

If you have any questions or concerns about your personal situation I would be happy to give you a FREE one-on-one legal consultation. You can call me at 916.442.6400 or send me an email at tgreene@tedgreenelaw.com or just visit my website www.upsidedownca.com.